Ncondezi Energy Share Discussion Threads

[druidinvestor] 09/4/2019 08:35

GridX was founded by Executive Directors Chalker Kansteiner and Justin Pengilly, who have both been working in the African power development sector for a number of years. Chalker was previously at Blackstone's large scale African energy project developer, Black Rhino, whilst Justin previously worked at Pele Green Energy, one of South Africa's leading independent power producers in the renewable energy sector (and is the brother of Hanno Pengilly, the Company's Chief Development Officer)

[druidinvestor] 09/4/2019 08:34

It was disclosed in the RNS.

[123js] 09/4/2019 08:31

If you take away the family link it remains an interesting and positive deal for NCCL - frankly the link probably improves the level of trust!But it does seem an error in judgement not to disclose and highlight that Hanno had no involvement in approval - there is independent board etc - to remove obvious suggestions of impropriety.Can't see them losing focus on the main event at this stage...but personally would've preferred this announcement after JDA dusted.

[cl0ckw0rk0range] 09/4/2019 08:04

As Hanno said in the interview the companies focus is 100% on the JDA to be completed this month.

[cl0ckw0rk0range] 09/4/2019 08:04

He's the joint founder and not the CEO - he doesn't make the decisions but I can see why you are trying to distract.

[yogaboy] 09/4/2019 07:58

The family connection hasn’t gone unnoticed and you’re right to view it with caution Glasswala. Let’s hope NCCL doesn’t get distracted from its billion dollar project by footling around with this “friends & family” tiddler.

We can only watch and wait.

[glasswala] 09/4/2019 07:40

Justin Pengilly is a GridX founder. Hanno is giving family consideration in doing this deal. Is it in the best Interest of the company??Is he as honest a broker for this company as everyone keeps spouting

[cl0ckw0rk0range] 09/4/2019 07:05

GridX renewables presentation :http://www.ncondezienergy.com/uploads/gridxopportunitypresentationpublic_final.pdf

[cl0ckw0rk0range] 09/4/2019 05:05

Yes no reason that the JDA won't be delivered this month as has been indicated. Bearing in mind all the partners are working together towards this and the government are also expecting it to be delivered it may look bad on GE and CMEC were they be unable to get it done as targeted and they have a reputation to uphold. I think April delivery.

[imjustdandy] 08/4/2019 19:10

Another Blue day post placing. JDA is the de risking event I've been waiting 6 years for. Just days to wait now.

[kingkongtimmo] 08/4/2019 17:36

Have just caught up today, excellent interview. He seems very confident and calm. All partners working towards jda this month, should be a great few weeks

[cl0ckw0rk0range] 08/4/2019 16:32

I don't think he would have said that all partners are working to complete JDA this month unless that was the case.... JDA looks pretty on to me.

[tonytony4] 08/4/2019 16:31

Nice interview JDA major de-risking!

[the deacon] 08/4/2019 16:30

Another excellent interview.

[cl0ckw0rk0range] 08/4/2019 16:15

https://www.proactiveinvestors.co.uk/companies/stocktube/12917/ncondezi-energy-s-hanno-pengilly-discusses-new-solar--battery-storage-joint-venture-12917.html

[cl0ckw0rk0range] 08/4/2019 13:48

Well it makes sense doesn't it, new income generative project and fully funded until 2020 ahead of JDA leaves it free to redraw without anyone fearing a placing coming.

[the deacon] 08/4/2019 12:25

Sounds as though the JDA is pretty much done and dusted. It's a no brainer from here, really.

[cl0ckw0rk0range] 08/4/2019 12:21

That's delayed from last week and can't see it being a place at that price can you? They wouldn't get out of bed for those crumbs.

[guyswonga74] 08/4/2019 12:09

Well there goes some flipping 3.5 million just under 7pw

[cl0ckw0rk0range] 08/4/2019 10:47

It's probably only a matter of a few weeks from now before Ncondezi Energy Ltd (LON:NCCL) signs on the dotted line of its long-awaited joint development agreement with power industry giants China Machinery Engineering Corporation (CMEC) and General Electric South Africa.The deal will allow for the development of the Ncondezi power project in northern Mozambique, and follows on from a successful round of negotiations with the Mozambican government and power authority in regards to project timing and indicative prices for long-term tariffs.The idea is to build a power plant in phases, starting at a capacity of 300MW and building up to 1,800MW in due course. Even allowing for that scalability though, it's a big ask for a small company like Ncondezi, which is capitalised at just under £24mln.And that's why it's bringing in CMEC and GE."It's a billion-dollar project," says Ncondezi chief development officer Hanno Pengilly."A small Aim company's never going to fund this type of thing on its own. GE and CMEC have the balance sheets and the track records to build and operate a project like this."And the clever thing about the proposed deal, which was first mooted as a non-binding offer back in November 2017, is that Ncondezi will be able to keep hold of a sizeable chunk of the equity, all the way through to production.This may seem like a no brainer, but it's all too easy for junior companies to be all but completely diluted out of big ticket deals like this, as they either struggle to raise the finance to hold up their ends, or else they have to give away everything just to attract partners in the first place.But Ncondezi is different for several reason. The first is that, although the coal asset that's associated with the power station would effectively be stranded without the power option, the project itself is situated right in the heart of Tete, Mozambique's most rapidly industrialising region and a hub for power generation.GE and CMEC are not new to Mozambique and they know what they're looking at when they see Ncondezi: opportunity.And so, the deal will likely leave Ncondezi with 40% of the project and GE and CMEC with 60%.So, on that nice round billion dollar price tag, Pengilly argues that an industry standard 70% or US$700mln could be funded by debt, leaving the partners with a total of US$300mln to find between them.Ncondezi's end would be 40% of that, or roughly US$120mln, a sum to which discounts can be applied for costs already incurred, running potentially to at least US$20mln, and also for what's known as a "developer's premium."That takes the overall amount Ncondezi's likely to need to a more manageable US$100mln or so, which is still a tidy sum, but not necessarily unattractive given the annuity-type income that's on offer from selling into the fixed price tariffs that will agreed with the Mozambican government.The precise numbers that Ncondezi is modelling are not public, as negotiations are ongoing and apt to be a matter of some sensitivity.But it's clear from the presence of GE and CMEC at the project level, and from the presence of Poland's largest independent power producer, Polenergia International, on the share register that professionals inside the power generating industry view this project with much optimism.Ncondezi is also supported on the share register by the African Finance Corporation, a specialist Africa infrastructure fund, and Polenergia and African Finance Corporation together hold approximately 30% of the company's issued shares, which would go some way to funding the project if both follow their rights when it comes time to raise the finance to get the project built.That's potentially quite a distance from the US$1bn overall price tag, and not a bad overall ticket for part of a project that's likely to deliver annuity income generated from selling into at least a 25 year off-take deal.How attractive remains to be seen, but Pengilly puts it like this."If the returns weren't attractive enough GE and CMEC wouldn't be interested in the project and looking to move forward."Separately, Ncondezi has just signed a deal that moves it into the solar power and battery storage space. The company has signed a joint venture deal with GridX Africa Development with a view to building captive solar and battery storage solutions for commercial and industrial use.To fund this deal a capital raising of £1.88mln was put in place.GridX has 15 solar and battery storage projects, of which six are at an advanced stage.

[cl0ckw0rk0range] 08/4/2019 10:17

There's hardly any stock on the book once that clears it gaps up - don't need a RNS for that.

[johny cash] 08/4/2019 10:14

Think you will need that fat juicy RNS for that to happen today.

[cl0ckw0rk0range] 08/4/2019 09:04

I can see this gapping up to 9p+ today

[cl0ckw0rk0range] 08/4/2019 07:18

Ha ha I think that is a typo - 28m shares to the board and long term investors, along with what looks to be a secured placing to a small group of HNW investors. No warrants. No flipping. Should make for an interesting few sessions ahead...